Hydropower and Renewable Portfolio Standards
Hosted by
Warren Leon, Executive Director, CESA
February 2, 2016
State-Federal RPS Collaborative Webinar
www.cleanenergystates.org 2
Housekeeping
Clean Energy States Alliance (CESA) is a national nonprofit coalition of public agencies and organizations working together to advance clean energy.
Renewable Development Fund
www.cleanenergystates.org 4
State-Federal RPS Collaborative
• With funding from the Energy Foundation and the US Department of Energy, CESA facilitates the Collaborative.
• Includes state RPS administrators, federal agency representatives, and other stakeholders.
• Advances dialogue and learning about RPS programs by examining the challenges and potential solutions for successful implementation of state RPS programs, including identification of best practices.
• To sign up for the Collaborative listserv to get the monthly newsletter and announcements of upcoming events, see: www.cesa.org/projects/state-federal-rps-collaborative
Today’s Guest Speakers
David Zayas, Senior Manager of Regulatory Affairs and Technical Services, National Hydropower Association
Dana Hall, Deputy Director, Low Impact Hydropower Institute
Tim Welch, Hydropower Program Manager, Wind and Water Power Technologies Office, US Department of Energy
Hydropower & Renewable Portfolio Standards
National Hydropower AssociationFebruary 2, 2016
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Available. Reliable. Affordable. Sustainable.
Presentation Outline
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Available. Reliable. Affordable. Sustainable.
About NHA & Industry Overview
State RPS Activity & Hydro Eligibility Requirements
Hydro Resource Assessments & Growth Opportunities
Clean Power Plan Eligibility
State Initiatives Advancing Hydro
Key Takeaways
U.S. Renewable Electricity Generation2014 (TWh)
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Available. Reliable. Affordable. Sustainable.
Key Statistics• America’s largest source of RE – 2,198
plants
• 7% of overall electricity generation and
the majority of renewable electricity in
2014
• Approximately 100 GW of installed
capacity, including 22 GW of pumped
storage.
• 50/50 capacity split between
public/private and federal (Army
Corps, TVA, Reclamation)
• Ownership: federal 8%, 27%
public/state/coops, 65% private
(IOUs/ IPPs)
• Societal benefits: flood control,
irrigation, water supply, recreation –
84% of fleet provides one or more
Industry Overview
State RPS Activity
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Available. Reliable. Affordable. Sustainable.
RPS Policies in 29 States & DC
Between 2013-2015 over 250 RPS bills introduced across the country:
The majority of the activity relates to modifications and revisions to existing policies:
• Significant revisions include: Hawaii 100% by 2045; California and New York 50% by 2030, among others.
• Increasing interest in expanding hydropower’s eligibility.
Numerous states have considered new RPS policies, one passed (VT)
Some rollbacks and repeals: West Virginia (repeal), Kansas (mandatory to voluntary)
Hydro’s Treatment & Observations
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Available. Reliable. Affordable. Sustainable.
Hydro’s treatment and eligibility in RPS’s varies: capacity limitations (
Hydropower Resource Assessments
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Available. Reliable. Affordable. Sustainable.
12 GW at over 54,000 NPDs
Source: ORNL
Available. Reliable. Affordable. Sustainable.
80,000 dams nationwide – only 3%are equipped with power generation.
8 GW in top 100 sites
81 of top 100 sites are dams owned by the U.S. Army Corps of Engineers
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Available. Reliable. Affordable. Sustainable.
Top 10 states with most NPD potential
State Potential Capacity (MW)
Illinois 1269
Kentucky 1253
Arkansas 1136
Alabama 922
Louisiana 857
Pennsylvania 679
Texas 658
Missouri 489
Indiana 454
Iowa 427
Source: NPD Report, p. 25 (Table 4)
Available. Reliable. Affordable. Sustainable.
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State PotentialCapacity (MW)
PotentialState Capacity (MW)
State PotentialCapacity (MW)
AL 922AZ 80AR 1136CA 195
ME 19MD 48MA 67MI 48
OH 288OK 339OR 116PA 679
CO 172CT 68DE 3FL 173
MN 186MS 271MO 489MT 88
RI 13SC 38SD 12TN 40
GA 144ID 12IL 1269IN 454
NE 7NV 16NH 63NJ 33
TX 658UT 40VT 17VA 50
IA 427KS 92KY 1253LA 857
NM 103NY 295NC 167ND 31
WA 85WV 210WI 245WY 45
Table 4. Summary of NPD Assessment by State Totaling 12 GW of Potential
(P.25)
Conduits & Canals
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Available. Reliable. Affordable. Sustainable.
Conduits & Canals Continued
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Available. Reliable. Affordable. Sustainable.
The Hydropower Regulatory Efficiency Act of 2013
• Removed “qualifying conduit facility” from FERC jurisdiction. Developer only needs to submit a Notice of Intent to Construct a Qualifying Conduit Hydropower Facility with the Commission. See -http://ferc.gov/industries/hydropower/indus-act/efficiency-act/qua-conduit.asp
• Significant use: 57 projects have received “qualifying conduit” status, representing over 24,000 kW’s
Bureau of Reclamation Lease of Power Privilege (LOPP) – Gaining Momentum
• Reclamation has approved a number of projects representing over 49,000 kW’s
• Reclamation resource assessments have identified hundreds of potential sites and thousands of additional kW’s
http://ferc.gov/industries/hydropower/indus-act/efficiency-act/qua-conduit.asp
Capacity Additions & Efficiency Improvements
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Available. Reliable. Affordable. Sustainable.
Some RPS’s recognize efficiency improvements similar to hydro’s eligibility under the Production Tax Credit: Incremental production gains from efficiency improvements or capacity additions to existing hydroelectric facilities placed into service after August 8, 2005 and before January 1, 2017 (including recent extension)
As of December 31, 2015, FERC has certified:
• 149 projects• 1,804,782.24 MWhs (avg. 12,112.63 MWh)• Average of 9.45% generation increase per project
• Available at: http://ferc.gov/industries/hydropower.asp
http://ferc.gov/industries/hydropower.asp
Clean Power Plan Final Rule & Hydro Eligibility
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Available. Reliable. Affordable. Sustainable.
“Existing RE is not counted in setting state goals. Rather, when establishing BSER, EPA examined the potential for utility‐scale RE in each of the three interconnect regions (Eastern, Western, and Electricity Reliability Council of Texas) that is both feasible and cost‐effective. Onshore wind, utility‐scale solar photovoltaic, concentrated solar power, geothermal and hydropower are the RE technologies included as part of the BSER… State RPS requirements are not a factor in quantifying the amount of cost‐effective RE that is part of the goal setting in the final rule.” (emphasis added)
“Consistent with other types of RE, new hydropower generating capacity installed after 2012 is eligible to states to help meet their goal. Existing hydro that makes an uprate can also be used for compliance.” (incremental generation)
Energy storage may not be directly recognized as an eligible measure that can be used to adjust a CO2 emission rate, because storage does not directly substitute for electric generation form the grid or avoid electricity use from the grid. • EPA concerns about double counting if both input and output recognized. • EPA recognized storage as an enabling measure that facilitates greater use
of RE & ancillary benefits.
Colorado – Passed hydro legislation and signed MOU w/ FERC to streamline and simplify the authorization of small hydro projects.
California – Signed MOU w/ FERC on coordinating the pre-application activities for non-federal hydro project proposals.
AK, ME, MA, RI, WY, and VT have all passed laws or created administrative /legislative workgroups to examine ways to grow their hydro resources. Governors’ Energy Offices are also taking the lead.
WI developing a systematic approach for evaluating fish passage at dams statewide.
Including/revising treatment of hydropower in state Renewable Energy Standards.
Providing developers with tax incentives or access to low-interest loan programs.
Available. Reliable. Affordable. Sustainable.
State Hydro Initiatives & Activities
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Current RPS policies have provided some value to the hydropower industry, but eligibility requirements are limiting participation and new development.
REC revenue would incentivize new development (existing infrastructure, capacity uprates, efficiency improvements), and provide key project financing.
Hydropower eligibility and recognition will provide an important source of renewable and carbon-free electricity for states in future RPS and CPP compliance.
States are revisiting RPS/ RE policies to include hydropower.
Energy landscape is changing compared to when first RPS’s were passed over a decade ago, which is reflected in recent activity to modify and revise existing policies, and federal legislation (HREA of 2013, WRRDA of 2014).
Available. Reliable. Affordable. Sustainable.
Key Takeaways
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Contact
David Zayas
Senior Manager of Regulatory Affairs & Technical Services
202.750.8406
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Visit us on the Web
www.hydro.org
NatlHydroAssoc
@NatlHydroAssoc
Available. Reliable. Affordable. Sustainable.
Questions?
Low Impact
Hydropower
and RPS
Dana Hall LIHI Deputy Director
mailto:[email protected]
LIHI Purpose (1999 Articles of Incorporation):
• To set criteria for characterizing hydropower facilities as “low impact”
• Conducting a program to certify facilities that meet these criteria with the goals of:– Reducing the environmental impacts of hydropower generation
– Creating a credible and accepted standard for consumers to use in evaluating hydropower
• Making information about the environmental effects of power generation available to the public
LIHI Mission Statement: “The Low Impact Hydropower Institute (LIHI) is a non-profit 501(c)(3) organization dedicated to reducing the impacts of hydropower generation through the voluntary certification of hydropower projects that have avoided or reduced their environmental impacts.”
LIHI governance includes a
diversity of perspectives
PLUS representatives from industry, government and the private sector
By-laws require minimum 50% board representation from Environmental NGOs
Lowimpacthydro.org/governance
Yes, some DAMS can have devastating impacts, But there are also LOW IMPACT projects of all sizes
Why certify hydropower?
LIHI is a nationwide program
123 certifications, ~170 dams, 28 states. Total capacity = 4.4 GW.
LIHI’s Low Impact Criteria
• Flows
• Water quality
• Fish passage and protection– Downstream and Upstream
• Watershed protection
• Protection of threatened and endangered species
• Cultural resource protection
• Recreation
All Criteria must be
satisfied for a certificate to
be issued
What kinds of projects are eligible?
Primarily Focused on Existing US Resources:• LIHI encourages facilities of all ages to apply
– GOAL: Reducing the environmental impacts of hydropower generation
• LIHI does certify new generation installed on dams in existence prior to August 1998 – new capacity, incremental additions
Ineligible for LIHI Certification:• Facilities outside the United States
• Marine Hydrokinetic technology
• Pumped Storage
• Facilities on dams constructed after August 1998
• Facilities on dams recommended (by resource agencies) for removal
Eligibility is subject to change
Our certification process involves
multiple steps
• Intake Review – informal consultation to assist in preparation of the full application
• Formal Application – reviewer evaluation of Questionnaire, public comment period, and recommendation to Board
• Certification Decision – Governing Board action or delegated to Exec. Dir./Tech. Comm.
• Annual Reporting – status check on any special conditions, plus annual fee payment
• Recertification – re-examination of all criteria after 5 to 8 years, including public comments
LIHI certification process is
transparent and accessible
• Public Notice and Comment – all Certification Applications are posted for 60 days, and open for public comment on the LIHI Criteria
• State Resource Agencies - Fish and Game, Wildlife, Environmental Protection, Historic Preservation, Watershed Management, etc…
• Local Community Groups – Tribes, river protectors, local recreation, historic and cultural groups, environmental groups, concerned neighbors
LIHI certification results in
commitments by Facility Owners
• Conditions on Certification - when additional measures are necessary to satisfy a LIHI criterion – facility-specific conditions are imposed
• Accountability - LIHI’s annual compliance process requires owners to report each year on continued satisfaction of criteria, and to self report any changes
Current certification fees
are modest
• Intake fee = flat $950 fee
• Application fees = range from $3,000 - $10,000
• Annual fees = based on average generation with $1,000 min and $30,000 cap
• Condition fees = range from $0 to $1000
• Recertification fee = flat fee $2000 for phase 1, if there is a phase 2 it is TBD ($0 - $5,000)
RPS and HydropowerAZ, CA, CT, DE, ME, MA, NH, NJ, NY, OH, OR, and PAimpose environmental criteria for hydroelectric eligibility
http://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for-Hydropower-in-State-RPS-April-2013-final.pdf
DE, MA, OR, and PA require LIHI certification in at least one RPS tier. UT requires LIHI certification for its voluntary Renewable Portfolio Goal.
http://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for-Hydropower-in-State-RPS-April-2013-final.pdf
Advanced technology can make
hydropower more GREEN
• Aerating and fish friendly turbines
• Better fish passage and protection
• Better flow regimes
Investing in Rivers,
Enhancing the Legacy
• External Environmental Benefits - healthy fish populations, protected watersheds, and public access
• Historic Treasures - 100+ year old infrastructure with cultural significance and beauty
• Economic Development –investments in existing hydro both preserves and creates jobs in our communities
The proof is in the pudding
Certificate No. 100 – South Milton Facility (NH) –
“By October 1, 2013, (owner) shall enter into, and provide LIHI with a copy of, an agreement reached between the USFWS, the New Hampshire Department of Fish and Game, and (owner) for providing both interim and permanent downstream passage and permanent upstream passage, that are safe, timely, and effective, for American eel, including a description of the planned passage and protection measures and the implementation schedule for design, installation, and operations… [which] shall be in place and operational by August 1, 2015”
The proof is in the pudding
Eel Passage installed in 2015 at South Milton (NH) LIHI Cert No. 100
LIHI Value Statement
Government
NGOs
Owner
Consumers
Thank You for Listening!
Dana Hall , LIHI Deputy Director
(201) 906-2189
mailto:[email protected]
1 | Program Name or Ancillary Text eere.energy.gov
DOE’s Hydropower Program
Hydropower Overview & Hydropower Vision
Timothy Welch
Hydropower Program Manager
Wind and Water Power Technologies Office
February 2, 2016
| Wind and Water Power Technologies Office eere.energy.gov2
• DOE’s Hydropower Resource Assessment
• HydroNEXT initiative for new hydropower technologies
• Hydropower Vision Report
DOE’s Hydropower Program
| Wind and Water Power Technologies Office eere.energy.gov3
Existing Non-powered Dams (NPD)
• Only 3% of existing dams produce power
• Existing U.S. non-powered dams have potential to generate up to
12 gigawatts (GW) of clean, renewable hydropower capacity from
50,000 suitable non-powered dams.
DOE’s Hydropower Program Hydropower Resource Potential
| Wind and Water Power Technologies Office eere.energy.gov4
New Stream-reach Development
• When federally protected waters are excluded, potential
hydropower development opportunities in U.S. rivers and
streams are approximately 65 GW of capacity.
DOE’s Hydropower Program Hydropower Resource Potential
| Wind and Water Power Technologies Office eere.energy.gov5
DOE Hydropower Program HydroNEXT Strategy
• DOE’s Hydropower Program’s HydroNEXT initiative
invests in innovative technologies for existing non-
powered dams and new stream reach development
that dramatically change the way we think about
hydropower by:
–Lowering costs
–Promoting environmental stewardship
DOE’s Hydropower ProgramHydroNEXT
| Wind and Water Power Technologies Office eere.energy.gov6
DOE’s Hydropower ProgramHydroNEXT – Lowering Costs
OpEx (Annual) 13%
Civil Works44%
Electro-MechanicalEquipment
34%
Electrical Infrastructure6%
Engineering & Construction Mgmt10%
Licensing & Project Development 6%
Capital Costs87%
Cost Breakout
| Wind and Water Power Technologies Office eere.energy.gov7
DOE’s Hydropower ProgramHydroNEXT – Lowering Costs
• Civil Works
Using modular, pre-
fabricated containers
(shipping containers) as
dams
“Pre-Cast” concrete modules
constructed in factory
• Powertrains
Turbines made from
lightweight, composite
materials that can be “3-D
printed”
• Standard Modular Hydropower
| Wind and Water Power Technologies Office eere.energy.gov8
Standard modular hydropower is a design concept that
optimizes both cost and environmental impact by:
Ensuring fish passage and stream connectivity
Innovating technology for remote operation and
environmental monitoring
Providing consistent flows and hydraulics for recreationists
Using advanced materials and manufacturing techniques
DOE’s Hydropower ProgramHydroNEXT
| Wind and Water Power Technologies Office eere.energy.gov9
DOE’s Hydropower ProgramHydroNEXT
QTQB
Passage
Modules
Generation
Modules
Standard Modular Siting
Protocols
• Generation Modules
• Validated Passage Hydraulics
Kayaks, Canoes, Rafts, etc.
Fish
Sediment and Debris
Water Quality
| Wind and Water Power Technologies Office eere.energy.gov10
DOE’s Hydropower ProgramHydropower Vision
A New Vision for United States Hydropower
The U.S. Department of Energy Water Power Program is looking toward the
future of the hydropower industry by developing a long-range national
Hydropower Vision. This landmark vision will establish the analytical basis for
suggested stakeholder actions that could usher in a new era of growth in
sustainable domestic hydropower over the next half-century. Included in this
effort are:
• A close examination of the current the state of the hydropower industry;
• A discussion of the costs and benefits to the nation arising from
additional hydropower; and
• A roadmap addressing the challenges to achieving higher levels of
hydropower deployment within a sustainable national energy mix.
| Wind and Water Power Technologies Office eere.energy.gov11
The Vision Pillars
• Maintenance and Growth of the Existing Fleet– Preserve and optimize (e.g. O&M, efficiency improvements,
rehabilitations, upgrades) the value and generation contribution of the existing hydropower fleet within the nation’s energy mix into the future
• New Hydropower Growth– Define credible yet visionary scenarios with options to power
non-powered dams, develop new stream-reaches, and build PSH through 2050
• Sustainability– Ensure the Water-Energy system, with its multiple uses and
values – economic, social, environmental – continues to function and improve
Progress towards a Vision
| Wind and Water Power Technologies Office eere.energy.gov12
Vision Report Outline:Chapters Overview
1. Executive Summary (+/- 20 pages)- Condensed version of all report chapters, including key talking
points and graphics; quick reference to entire Report
2. Vision for Hydropower’s Future Contributions (+/- 20 pages)- Where we can go in 2030 and 2050?
3. State of Hydropower in the U.S. (+/- 200 pages; 10-25 per section)- Where we are today – state of technology, development,
environment. Sets baseline for Vision. Defines barriers to growth and current trends in hydropower
4. Impacts of a Robust Hydropower Vision (+/- 80 pages; +/- 10 per section)- Benefits of achieving vision – reduction in GHG, water savings, grid
stability, economic development, price stability
5. Roadmap for the Hydropower Vision (+/- 60 pages)- Actions needed to achieve the Vision
| Wind and Water Power Technologies Office eere.energy.gov13
Roadmap Action Areas
Collaboration,
Education, and
Outreach
Performance and
Reliability
Revenue and Market
Structures
Multiple Uses and
Benefits
Technology
Advancement
Workforce
Development
Sustainable Planning
and Siting
Regulatory
Process
Improvement HYDROPOWER
VISION
| Wind and Water Power Technologies Office eere.energy.gov14
Vision Process Core Principlesand Organization
Consistency
Referenceable data
Transparent & replicable
Objective, unbiased & high integrity
Discipline in communications
Ten task forces totaling 300 experts from over 130 organizations
Broad stakeholder engagement: proponents and opponents
Technical & business peer review
| Wind and Water Power Technologies Office eere.energy.gov15
Project Completion: Critical Milestones
SPRG
Meeting 1
SPRG
Meeting 2
SPRG
Meeting 3
SPRG
Meeting 4
SPRG
Meeting 5SPRG
Meeting 6
DRAFT Report to External Peer Review: February 2016
• Draft report to OMB, SPRG, Task Forces, PMAs, MOU Agencies, Resource Agencies, DOE Offices for comments
DOE Internal Review: April 2016
Report Release: July 26, 2016
– HydroVision Conference (Minneapolis, MN)
| Wind and Water Power Technologies Office eere.energy.gov16
Thank You!Timothy Welch
Hydropower Program Manager
DOE Wind and Water Power Technologies Office
For more information please visit:
water.energy.gov
DOE’s Hydropower Program
Thank you for attending our webinarWarren Leon
RPS Project Director, CESA Executive [email protected]
Visit our website to learn more about the State-Federal RPS Collaborative and to sign up for our e-newsletter:
http://www.cesa.org/projects/state-federal-rps-collaborative/
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